Cluster Development Programme (CDP)
CDP is an incentive programme that aims to promote industrialisation, sustainable economic growth and job creation needs of South Africa through cluster development and industrial parks.
The objective of the CDP is to enhance competitiveness of enterprises within a cluster. This is to be implemented through defined collaborative projects that address production, productivity and marketing. The CDP consists of the following components; Shared Infrastructure Grant, Business Development Services and Cluster Management Organisation (CMO) funding. Applicants will be able to apply for one, or a combination of the components based on their needs. Clusters from the following sectors will be prioritised; metal fabrication, capital and rail transport equipment, plastics, chemicals, cosmetics and pharmaceuticals, forestry, timber, pulp, paper and furniture, agro-processing, business process services, cultural and creative industries, crafts, music and film, boat building, green and energy saving industries, downstream mineral beneficiation, upstream oil and gas services and equipment, nuclear and advanced manufacturing (including defence, aerospace, electro-technical and white goods). The applying cluster must be a registered non-profit company in South Africa. The cluster should have five or more members who are registered tax paying entities or non-profit organisations, amongst other acceptable corporate guidelines and governance provisions. Not more than 20% of the member entities of the cluster may be from the same group of companies.
Shared infrastructure, business development services and cluster management organisation funding
The following organisations are excluded from either applying as clusters or forming part of the cluster; export councils, industry associations, trusts. Non-qualifying costs include any activity that is partially supported by another government scheme, quasi-government scheme, or that receives any other support from an entity other than members of the cluster.
To apply visit the dti website, and locate the financial assistance tab. All information regarding application forms and guidelines is provided for in each of the dti funding and/or incentives.
An eligible cluster should have five or more members who are registered tax paying entities or non-profit organisations. At least 20% of the membership of the cluster should be made up of 51% black owned entities in the first year (i.e. the pilot stage). In case of industrial parks, preference will be given to parks located in areas where there are high levels of unemployment (townships or rural areas), the majority of tenants must be involved in manufacturing or supply based firms.